GlobalData Predicts Growth in Netherlands

The latest market snapshot from GlobalData;

In terms of gross written premiums (GWP), the Netherlands’ general insurance industry is expected to grow at a compound annual growth rate (CAGR) of 3.8%, from €64.4 billion ($76.2 billion) in 2021 to €77.6 billion ($94.1 billion) in 2026, according to GlobalData.

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The leading data and analytics company found that growth in the general insurance segment will be driven by personal accident and health (PA&H) insurance, which contributed to more than 80% of the general insurance GWP in 2021.

Sneha Verma, Insurance Analyst at GlobalData, comments: “Health insurance premiums rates are expected to increase by more than 8% in 2023 as compared to 2022 which will support premium growth. The Dutch PA&H segment is expected to register a CAGR of 4.1% from 2023 to 2026, driven by an increasing demand for private health insurance over and above the basic coverage mandated by the government and rising medical inflation.”

Increasing the accessibility of health insurance through the digitalization of health services is a key focus area for insurers. Favourable regulations for digital services will provided greater flexibility for insurers which will help in the wider adoption of health insurance products.

Sneha continues: “Some of the digital developments in the healthcare industry include conversational artificial intelligence (AI) and remote patient monitoring. Leading Dutch Insurance provider, Zilveren Kruis, started using AI chatbots which has enabled the company to respond to customers instantly and provide round the clock services.”

Motor insurance is the second-largest segment, accounting for 7.8% of the total premiums in 2021. The segment registered a growth of 6.8% in 2021 as compared to 1.9% growth in 2020, driven by the recovery in automobile sales and the government’s push towards expanding the electric and hybrid car market to achieve 100% emission-free traffic by 2030. Motor insurance is forecast to grow at a CAGR of 5.6% between 2021-2026.

Property insurance accounted for 6.1% of the Netherlands’ general insurance GWP in 2021. The segment grew by 10.0% in 2021, as compared to 2.4% growth in 2020, backed by the government’s initiative to invest heavily in renewable projects, housing, and infrastructure projects.

Liability, Financial Lines, Marine, aviation and transit (MAT), and Miscellaneous insurance accounted for the remaining 4% share in 2021.

Sneha concludes: “The surge in health insurance premium rates and an emphasis on digitalization in health care services is expected to drive growth in the Dutch general insurance industry over the next five years.”

About alastair walker 10923 Articles
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